WallStSmart

American Airlines Group (AAL)vsUnited Airlines Holdings Inc (UAL)

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Smart Verdict

WallStSmart Research — data-driven comparison

United Airlines Holdings Inc generates 12% more annual revenue ($65.55B vs $58.34B). UAL leads profitability with a 5.5% profit margin vs -0.6%. AAL appears more attractively valued with a PEG of 0.09. UAL earns a higher WallStSmart Score of 64/100 (C+).

AAL

Hold

46

out of 100

Grade: D+

Growth: 4.7Profit: 3.5Value: 8.3Quality: 4.5
Piotroski: 3/9Altman Z: 0.59

UAL

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 6.0Value: 4.7Quality: 4.5
Piotroski: 6/9Altman Z: 1.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AALUndervalued (+32.3%)

Margin of Safety

+32.3%

Fair Value

$21.21

Current Price

$12.58

$8.63 discount

UndervaluedFair: $21.21Overvalued
UALSignificantly Overvalued (-46.4%)

Margin of Safety

-46.4%

Fair Value

$71.85

Current Price

$105.21

$33.36 premium

UndervaluedFair: $71.85Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AAL3 strengths · Avg: 9.3/10
PEG RatioValuation
0.0910/10

Growing faster than its price suggests

Debt/EquityHealth
-8.5910/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
16.3%8/10

16.3% revenue growth

UAL4 strengths · Avg: 8.8/10
P/E RatioValuation
9.5x10/10

Attractively priced relative to earnings

Return on EquityProfitability
20.1%9/10

Every $100 of equity generates 20 in profit

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
17.4%8/10

17.4% revenue growth

Areas to Watch

AAL4 concerns · Avg: 2.8/10
Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Operating MarginProfitability
2.8%3/10

Operating margin of 2.8%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-88.2%2/10

Earnings declined 88.2%

UAL4 concerns · Avg: 2.5/10
Profit MarginProfitability
5.5%3/10

5.5% margin — thin

Debt/EquityHealth
1.933/10

Elevated debt levels

PEG RatioValuation
4.862/10

Expensive relative to growth rate

Free Cash FlowQuality
$-1.67B2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : AAL

The strongest argument for AAL centers on PEG Ratio, Debt/Equity, Revenue Growth. Revenue growth of 16.3% demonstrates continued momentum. PEG of 0.09 suggests the stock is reasonably priced for its growth.

Bull Case : UAL

The strongest argument for UAL centers on P/E Ratio, Return on Equity, Price/Book. Revenue growth of 17.4% demonstrates continued momentum.

Bear Case : AAL

The primary concerns for AAL are Return on Equity, Operating Margin, Piotroski F-Score.

Bear Case : UAL

The primary concerns for UAL are Profit Margin, Debt/Equity, PEG Ratio. Debt-to-equity of 1.93 is elevated, increasing financial risk.

Key Dynamics to Monitor

AAL carries more volatility with a beta of 1.33 — expect wider price swings.

UAL is growing revenue faster at 17.4% — sustainability is the question.

AAL generates stronger free cash flow (-1.2B), providing more financial flexibility.

Monitor AIRLINES industry trends, competitive dynamics, and regulatory changes.

Bottom Line

UAL scores higher overall (64/100 vs 46/100) and 17.4% revenue growth. AAL offers better value entry with a 32.3% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

American Airlines Group

INDUSTRIALS · AIRLINES · USA

American Airlines Group Inc. is an American publicly traded airline holding company headquartered in Fort Worth, Texas.

United Airlines Holdings Inc

INDUSTRIALS · AIRLINES · USA

United Airlines Holdings, Inc. (formerly known as United Continental Holdings, Inc., UAL Corporation, Allegis Corporation and founded originally as UAL, Inc.) is a publicly traded airline holding company headquartered in the Willis Tower in Chicago. UAH owns and operates United Airlines, Inc.

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